Kike Sarasola he will continue to be Executive Chairman of Room Mate. But now under the guidelines of the new partners Angelo Gordon and Westmont Hospitality Group, to whom the hotel company is 100% owned, after they acquired it last summer.
Specifically, Room Mate filed for bankruptcy in June 2022 and a month later, Commercial Court No. 14 of Madrid approved the room mate sale a Angelo Gordon and Westmont Hospitality Group for about 57 million euros. The first is an alternative investment fund focused on real estate and credit strategies, with specialized teams in markets such as the United States, Europe and Asia. For its part, Westmont Hospitality Group is one of the largest private hotel organizations in the world, with a portfolio of more than 500 hotels in the United States, Europe, Africa and Asia.
Sarasola, founder and president of Room Mate, explains to this medium: “As a result of this transaction we have been able to maintain the business continuity and to preserve both our staff -made up of 700 employees- and our commitments with suppliers and customers”.
Room Mate starts the year with a new strategic plan, focused on “promoting sustained growth and improving the business for the future”, according to the president of the company. Among the key aspects of the plan are the growth of the brand and the chain expansion hotelier through complementary acquisitions in Europe. Likewise, the firm is focused on continuing to “continue to institutionalize and improve its internal resources, processes and infrastructures to provide a better service to its lessors, suppliers and customers”.
Angelo Gordon and Westmont, along with the Room Mate management team, have already launched a number of initiatives aimed at improving the overall business profitability and its growth in the future. To date, this has resulted in improved capital structure of the chain, the end of agreements with low-performing hotels and the extension of the lease contracts of certain properties. In this new stage, Room Mate expects to continue executing its strategic plan in the coming months in close collaboration with the landlords.
“Looking forward, we are very committed to continuing to lead in our current markets and are excited to bring the Room Mate brand to new markets. Within our strategic and structured expansion plan, we are open to considering the purchase, leasing or management of hotels, hotel chains, apartment buildings and hostels throughout Europe,” he said. Victor FernandezCEO of Room Mate.
Currently, the chain has 22 hotels and 11 apartment buildings in six countries, mainly in Spain, Italy and the Netherlands.
Departure of Sandra Ortega
rosp corunnaSandra Ortega’s investment company, stopped providing financial support to room mate at the beginning of 2021, after during the first half of the previous year it guaranteed bank loans to the hotel chain for an amount of 89 million of euros. The loss of confidence of the daughter of Amancio Ortega in the business of the company founded by Kike Sarasolaand the fact that it stopped providing financial support to the chain, is one of the causes that led to the entry into bankruptcy by Room Mate.
PwC, Room Mate’s bankruptcy administrator, pointed out at the time that among the “circumstances” that could have caused the company’s insolvency situation are: the impact of Covid on its business; the execution of a loan granted to the hotel chain by the fund atitlan, from ex-Goldman Sachs Roberto Centeno and Aritza Rodero, who had the accounts in four group hotels as collateral; and the loss of financial support from Rosp Corunna.
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